2011 Index of Economic Freedom as calculated by the Heritage Foundation screen grab/guardian.co.uk

An IMF-EU bailout, four of the seven major banks in the country nationalised and a swingeing budget that will mean hardship for some of the population for years to come …

But that hasn't stopped Ireland being rated as one of the top countries in the world to do business – ahead of the UK, the US and the powerhouse of Europe, Germany.

That's according to a global index published today that measures commitment to free enterprise.

Hong Kong was deemed the most free place in the world to do business, followed by Singapore (whose corporation tax incidentally competes well with Ireland's 12.5%) and Australia. (See table of global corporation tax)

Hong Kong shone for a number of reasons including its attitude to foreign investment. "Foreign capital receives domestic treatment, and foreign investment is strongly encouraged," according to notes accompanying the index.

The Heritage Foundation behind the 2011 Index of Economic Freedom pointed out that Ireland fell from top notch to second place in Europe – but there were still a lot of positives.

"Despite the ongoing crisis, Ireland's overall levels of economic freedom remain high, sustained by such institutional strengths as strong protection of property rights, a low level of corruption, efficient business regulations, and competitive tax rates," it said in its detailed analysis of Ireland.

Two of the world's biggest spending governments, the UK and the US fell in the index this year. (Get the index here)

The UK has dropped five places to number 16 in the index, while the US dropped to ninth place, its lowest economic freedom score in a decade.

"After two years of doubts and side-steps, economic freedom is again on the rise around the world. That's especially good news for the poor. Countries gaining economic freedom have done a much better job over the last decade in eliminating poverty," said Terry Miller, director of the centre for international trade and economics at the Heritage Foundation.

The index measures 10 categories of economic freedom: fiscal soundness and openness to trade and investment, government size, business and labour regulation, property rights, corruption, monetary stability and financial competition.